Website Blogs (4) Week 1: Investing During War: Why History Says Doing Nothing is the Best Strategy As military activities escalate in the Middle East, markets respond with volatility and investors are gripped with panic and anxiety. The obvious instinct is to take action, to sell the risk assets, chase the so-called safe haven assets or try to take advantage of the chaos. Two new analyses from The Globe and Mail and The New York Times, veer towards a different approach: not panicking and doing nothing.
Why Your Brain Wants You to Panic (And Why You Should Not) When news screams “war” your brain’s fear center is stimulated. This response is evolutionary and has served our ancestors well when facing large predators but it is disastrous when applied for investor psychology during volatile markets. The urge to “fix this” feels right, but financial history has a different story to tell.
What Historical Evidence on War and Stock Markets Teach Us? Observing war and stock market history acts as a soothing agent to panic. According to Mike Silverman, the CIO at Cresset Capital Management, analyzed the market reactions that stemmed after eight major conflicts over the last 36 years, from the 1990 Gulf War to today’s U.S. - Israeli strike on Iran. His findings, as reported in The Globe and Mail, are striking: ● The S&P 500 dropped by just 0.37% within one week of a conflict’s beginning. ● It rose by 0.5 on average within one month. ● One month after 9/11: rose by 0.6% ● One month after Russia’s 2022 Ukraine invasion: up by 5.5% While past performance should not be seen as a guarantee, the historical data suggests that markets have a remarkable ability to bounce back after geopolitical shocks. Jeff Sommer notes in The New York Times, "History shows that doing nothing has generally been a fine strategy when the markets act up”.
The Lure (and Trap) of Opportunistic Moves? During conflicts, certain sectors inevitably experience significant changes. The recent US-Israeli and Iran conflict briefly: ● Pushed oil prices above $77 a barrel on supply concerns ● Boosted defence stocks such as Northrop Grumman and Elbit Systems ● Rise in Gold as investors resorted to safe haven assets ● Spike in crop stocks like Butrien on due to supply fears. However, geopolitical risk investing via opportunistic sectors is laced with danger, Silverman points out, is the risk of “buying too late”. For example: If one buys defence stocks or gold today, what will happen to its position once the conflict de-escalates tomorrow? Successfully timing such short-term changes is very difficult for the average investor.
Wisdom of the “Do Nothing” Investing Strategy Both articles listed above cover the same principle: for long-term investors, a do nothing investing strategy is optimal. If the portfolio is well-diversified, employing low cost index funds and holding broad stock and bond markets in reasonable proportions presents no excuse to make abrupt changes. This is a grounded approach, rooted in years of wisdom. It aims for the market’s average long-term return, and has historically been robust despite wars, pandemics and other crisis. Dodging short-term losses or capturing fleeting gains leads to buying high and selling low that incurs needless costs and taxes. The buy and hold strategy has consistently outperformed attempts over market-timing for decades.
Recessions Are the Real Risk Jeff Sommer provides an important caveat: inaction is not completely foolproof. The real danger is not the conflict but the potential for that conflict to kickstart a broader economic recession. A prolonged war that disrupts global energy supplies as well as trade will certainly hamper economic growth. However, even during a recessionary scenario, hastily reacting to headlines is rarely a cure. A well-structured portfolio designed for long-term investing, that is capable of withstanding volatile cycles via proper asset allocation is key.
What About Safe Haven Assets? Gold was the undisputed safe haven asset and the U.S. dollar strengthened as investors sought safety. Energy stocks experienced a spike due to supply concerns. But here’s the uncomfortable
truth: by the time these trends become mainstream, the easy money would have already been made. For most investors, trying to enter into safe haven assets during a crisis is speculation, not investing. Such shifts require both entry and exit timing which even professional fund managers struggle to consistently achieve.
Discipline Over Headlines? The best strategy for investing during war is, counter-intuitively, putting the strategy away. Discipline is paramount. ● Ignore the headlines ● Resist speculation, not matter how strong the urge is ● Focus on long-term objectives, such as retirement, child’s education and financial independence. ● Trust diversification to sail through the storm. As Silverman puts it: “Decisions should be grounded in long-term objectives rather than short-term headlines”. In simpler words, just stay calm. The world has survived countless crises, from wars, to pandemics, and markets have consistently bounced back and have rewarded those who remained invested through them all. This too, shall pass.
Week 2: SIP Thumb Rules: Behavioral Shortcuts That Actually Work for Long-Term Investing Investing in India is as much about stories, as it is about numbers. SIPs (Systematic Investment Plans) have become a viable investment vehicle in the Mutual Fund Industry, as they are celebrated for their ability to cultivate discipline and deliver results over the long run. Alongside SIPs, a set of thumb rules have also emerged over the years which are mental shortcuts that blend SIPs with behavioral nudges. But here’s a serious question: Do these thumb rules actually work, or are they just a marketing gimmick? The answer lies in the rules’ ability to mould investor behaviour. While starting a SIP is simple, sustaining through the various market cycles is where the majority of the investors struggle. This is where the rules come into play.
Why SIP Stickiness Matters? Recent AMFI relays a compelling story about SIP stickiness and the role of advisors’ influence. In March 2020, SIPs: 87% in Direct Plans and 75% in Regular Plans were discontinued within three years. Comparing that to March 2025, the landscape has shifted significantly. SIPs with a longer tenure (over three years) rose significantly. Direct plans rose up from 13% to 36%, whereas Regular plans spiked from 25% to 52%. The bottom line? Advisor-led SIPsdisplay better persistence. Regular plans now have investors that stick beyond three years, proving that the right conversations and behavioral nudges make a noticeable difference. Here is where the thumb rules lay out the necessary framework for.
Rule 1: The 15-15-15 Rule - One Crore is Just a SIP Away? By investing ₹15,000 per month for 15 years at a 15% CAGR, will basically yield approximately ₹1 core. It is India’s most repeated SIP mantra, a favourite objection handling point as well as a conversation starter for advisors. Does it work? The math is sound but the rule is sensitive to its core assumptions. Even a small deviation in returns will significantly impact the outcome. ● At 10% CAGR: ₹62.5 lakh ● At 12% CAGR: ₹75.6 lakh ● At 15% CAGR: ₹1 crore. So instead of sticking to it like it’s one of the commandments, you can treat 15-15-15 as a goal template and not a guarantee. For actual execution, use a range of expected returns and top up your SIP to make the target safe. If the returns fall short then you can extend the period or increase the contributions.
Rule 2: The Rule of 72/114/144 - The Mental Calculator ● Rule of 72: Years to double money =72/return% ● Rule of 114: Years to triple money = 144/return% ● Rule of 144: Years to quadruple money = 144/return% Does it work? This rule serves as a mental shortcut to a “return fantasy detector”. If an investor claims that their money will double quickly, the implied return becomes obvious. Doubling in 5 years means 14-15% CAGR (72/5). This insight alone will convert a casual saver into a dedicated SIP investor by revealing the challenge of achieving higher returns.
Rule 3: The Rule of 7-5-3-1 Rule - Behavioral Framework That Wins This rule stands out as it focuses on investor behavior rather than returns themselves. ● 7: Invest for at least 7 years ● 5: Diversify across 5 different portfolio roles (core equity, satellite equity, high-quality debt, global funds, liquid funds) ● 3: Expect 3 emotional phases such as Greed, Fear as well as Herd Mentality ● 1: Increase the SIP annually to enhance corpus overtime. Does it work? This rule is considered the winner as most rules talk about returns. This one talks about the sabotaging behaviour that investors sometimes display. Anticipate emotional phases and normalising them acts as a powerful counter to “I’m doing something wrong”
Rule 4: The 8-4-3 Rule - Understanding Compounding’s Three Phases This rule serves as an easy story on how compounding works its magic over a 15-year period. ● First 8 Years: Slow, steady growth (only 27% of corpus accumulated) ● Next 4 Years: Accelerated growth (60% of corpus accumulated) ● Last 3 Years: Explosive gains (last 3 years adds up to 40% of your corpus) Does it work? The 8-4-3 rule captures a most uncomfortable truth: the greatest threat posed to SIP investors is not short-term volatility but the impatience during early years itself, when compounding seems too slow. This rule encourages investors to hold on until the benefits become obvious.
Which SIP Thumb Rules Actually Work? When rules “work” it does not mean they accurately predict returns. By “work” it means they improve investor behaviour by reducing self-sabotage. Let’s see how these rules rank as behavioural tools: 1. 7-5-3-1: The best framework for addressing emotions, diversification as well as annual discipline. 2. 72/114/144: Sanity check, Enables investors to assess return expectations more realistically. 3. 15-15-15: Serves as a good starting template. This rule is a good conversation starter.
4. 8-4-3: The best patience story. It inspires investors to hold on through the slow early years.
Bottom Line for Advisors and Investors Success in SIP Investing is not about the right thumb rule but using them to avoid making poor decisions during periods of uncertainty. The AMFI data proves that investments that are based on advisor-led conversations lead to longer SIP tenures as well as better outcomes. The real edge is not rooted in formulas but in investment behaviour. These rules simplify decisions, reduce negative emotions such as fear, greed and anxiety and create mental anchors that keep investors grounded through market ups and downs.
Week 3: NRI Retirement Planning 2026: Estate Transfer and Three Retirement Patterns. For NRIs, retirement planning is different on a fundamental level when compared to a resident Indian. It is not just about accumulating a corpus, it is about answering an existential question: Where do I want to grow old? According to wealth management experts, NRIs have high-disposable income, greater-risk taking ability as well as higher transparency expectations compared to their resident counterparts. But they also face a unique problem which is “dual geography”. In simple terms your earning years happen in hard currency (USD, GBP, AED, etc) whereas your spending years might happen in India (INR), abroad or a bit of both. This blog breaks down three retirement patterns that are observed among NRIs, and how to plan your finances around them.
The Three Retirement Patterns of NRIs This is based on client behaviour as well as lifecycle analysis, NRIs usually fall into three retirement archetypes. 1. Pattern A: The Temporary Expat (5 to 10 Years Abroad): This group consists of professionals who went abroad for a specific career opportunity or to save aggressively. They intend to retire in India. ● Retirement Preference: They will return to India. They wish to remain in their hometown, close to their family, with a corpus denominated in Indian Rupees. ● The Strategy: The main goal is to maximize remittances as well as investments in INR-denominated assets. While some portion of overseas savings are
necessary for the transition, the core retirement corpus should be built in India in order to avoid currency conversion losses at withdrawal. But NRIs must be aware of TDS (Tax Collected at Source) on foreign remittances under (LRS) Liberalised Remittance Scheme, which is at 5% for amounts that are above ₹7 lakh for purposes other than education and medical treatment. 2. Pattern B: The Permanent Expat (Settled Abroad Forever): These NRIs wish to leave India forever. Their children are in foreign schools, they own property in their current country of residence and they wish to remain there post-retirement. ● Retirement Preference: Staying abroad with a retirement corpus built in the local currency of the country of residence. ● The Strategy: This requires international estate planning. The focus mainly shifts from “repatriation” to “cross-border taxation”. It is necessary to balance the assets between your country of residence (to fund daily retirement life) and India (for familial obligations and/or for emotional security). Understanding the Double Taxation Avoidance Agreement (DTAA) between India and the present country of residence is vital to ensure your pension as well as your investment income are not double taxed. 3. Pattern C: The Boomerang NRI (Returning Post-Retirement): This is a new trend. After decades abroad, many NRIs sell their properties abroad to move back to India, for the lifestyle, culture as well as the lower cost of living. ● Retirement Preference: Reintegrate into India. ● The Strategy: This is a complex transition as one must consider insurance portability (especially health insurance, as international plans do adequately cover India). , foreign pension income taxation in India, as well as repatriation of large sale proceeds generated from abroad. The FEMA (Foreign Exchange Management Act) governs how much money you are allowed to bring in and what happens to your NRE/NRO accounts once your residential status turns back to being “Resident”.
Aligning Risk Profile with Retirement Timelines Your investment strategy should match your timeline and your type. ● Short Term (2-5 Years): If your stay is short, liquidity becomes key. You might not possess social security in the host country therefore simple insurance coverage and focus on India-linked savings (like NRE deposits) become crucial. ● Long-Term (10-20 years): This group possess dual family needs (parents staying back in India.spouse and/or kids abroad). Currency diversification becomes non-negotiable. You will need to build an international retirement fund that hedges against rupee depreciation as well as potential western markets downturns.
● Forever (Settled Abroad): If you are planning to let go of your roots and settle permanently in the present country of residence then the focus shifts to legacy planning. Without proper succession planning, your assets in India could be stuck between different legal battles due to Indian inheritance laws. A will created in your country of residence might not be automatically valid in India, which necessitates separate estate documentation.
Build Your Retirement Corpus Irrespective of where you decide to settle, the “Retirement Timeline” follows three distinct phases: 1. Accumulation Phase (40 to 60 Years): This is a peak earning window so maximize your contributions to your retirement accounts. Those with ESOPs or equity-linked benefits from employers abroad can consult with an advisor on how to diversify 2. Pre-Retirement Phase (60 to 80 Years): If it wasn’t obvious enough, this is the retirement phase. For NRIs, lifestyle needs are comparatively higher than resident Indians. Travel, hobbies and doting upon Grandchildren (if any) require sustainable cash flow. This time signifies the need to shift from growth assets to income generating assets. 3. Legacy Phase (Till End of Life): The final phase involves estate transfer. Do you want to leave your retirement corpus to Charity? To your children who might be in the US or UK? Understand the tax implications for your heirs in their country of residence, as it is the final puzzle piece.
Conclusion There is no “one size fits all” cookie-cutter approach when it comes to NRI retirement planning. It needs a dynamic strategy that adapts to currency fluctuations, cross-border taxation as well as where you call “home”. Consult with a personalised financial planner (PFP) who understands both the Indian and International Financial Landscapes.
Week 4: NRI Insurance Guide 2026: Who Needs it and What You Can Buy Abroad For NRIs, insurance comes as an afterthought. When you are caught up in the thrill of earning in a foreign currency and sending remittances home, the uncertainties that plague people everyday take a backseat.
The current global climate however offers a wake-up call. Rising healthcare costs in India, economic uncertainty abroad has necessitated insurance as a cornerstone in smart NRI financial planning.Irrespective of profession abroad, the question should always be “What kind of insurance do I need, and from whom abroad? And not “Can I buy Insurance abroad as an NRI?” This blog breaks down the current insurance rules as well as regulatory frameworks.
Who is Insurance Really For? The most common misunderstanding when it comes to insurance is that it is only for the individual purchasing the policy. For the NRIs, it is about protection across borders.
The Working-Age NRI (The Earners) If you are in your 20s to 40s, the biggest asset is your earning potential. Solely relying on your employer-provided group insurance is a risk. If you lose your job or switch careers, the coverage disappears as if it never existed. Having an independent life insurance policy as well as a personal health insurance policy makes sure that medical emergency or unforeseen turn of events does not jeopardize your savings goals or strand your family. All life insurers in India offer policies that are designed specifically for NRIs, that provide worldwide coverage and remain valid even when your residential status changes.
The Older NRI (Returnees, Retirees and Parents) NRIs approaching their 50s and 60s, shift their focus from “income replacement” to “health security”. Critical illness covers become more vital. Therefore many older NRIs now consider moving back to India as they prefer a robust health insurance plan in India due to government schemes not offering adequate coverage after years abroad.
The Dependants in India (Parents and Family) This is a more urgent use case. Aging parents in India as well as soaring medical inflation is a real concern. Single hospitalization wipes out years of remittances. Buying a health insurance plan for your parents from an Indian insurer is cheaper and efficient than wiring money in case of emergencies. It ensures cashless treatment as well as direct settlement with the hospital. While experts note that insurers settle over 95% of claims, the real challenge for NRIs lies at claim time, which requires coordination across time-zones with hospitals and third-party administrators (TPAs).
Insurance Types for NRIs: What are Allowed? One of the most frequent questions asked by NRIs is “Can I buy insurance in India while living abroad?”. The answer is mostly yes, but with conditions at place. Below is the present insurance landscape for NRIs who wish to invest in Indian insurance policies.
Life Insurance: NRIs are eligible to purchase both online and offline life insurance policies in India. The policies are issued in INR (Indian Rupee) but foreign currency is also an accepted form of payment when it comes to paying premiums. NRIs are required to complete KYC formalities either through their Indian address or passports. Depending on the insurer, a physical medical examination might be necessary. If in India, then NRIs can take a physical test at the insurer’s cost in a local center. If abroad then tests must be taken at affiliated and insurer recognized centers.
Health Insurance: Based on their coverage needs, NRIs can buy health insurance plans in India, but timing is crucial. Most insurers require the NRI to be physically present in India at the time of issuance. But once the policy is active, renewal becomes possible from every corner of the world. Also, claims are restricted to treatments within India which is ideal for parents or for the NRI’s visits to home.
General Insurance (Car and Property): If you own a vehicle, or commercial property in India, you should safeguard it with insurance. These policies are easily issued as long as the asset is located in India. This safeguards your properties from unforeseen risks such as fire, theft or natural disasters. International insurers also provide coverage in this aspect for NRIs in particular regions.
Travel Insurance: This is important for NRIs that travel back and forth. Although certain international credit cards provide coverage, a dedicated NRI travel insurance plan covers trips cancellations, lost baggage, and to an extent, even medical emergencies in transit. Travel insurance covers unexpected medical accidents, illnesses while travelling outside India, but not routine check-ups or long-term treatments.
Conclusion Insurance for NRIs is not just about meeting compliance requirements but about ensuring that your life abroad does not create any vulnerabilities in your family’s safety net. By combining Indian policies (for family and assets in India) and international coverage (yourself), you create a financial buffer that safeguards your wealth from life’s uncertainties.
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Week 2: Why do NRIs Return to India? (Single Image Infographic) Strong Economic Growth India offers expanding career, business, and investment opportunities. Better Investment Opportunities Attractive options in real estate, equities, and startups. Family & Lifestyle Preferences Closer to family, culture, and a familiar lifestyle. Lower Cost of Living Higher quality of life at comparatively lower costs. Retirement & Long-Term Planning Easier asset management and comfortable retirement.
Week 3: Documents to Open NRE/NRO Account in India ● ● ● ● ● ● ● ●
Passport Valid Visa / Work Permit / Residence Permit Overseas Address Proof Indian Address Proof PAN Card Passport-size Photographs Account Opening Form OCI / PIO Card (if applicable)
Week 4: Why Most SIP Investors Don’t Feel Rich? (Single Image Infographic) ● ● ● ● ● ●
Many believe a ₹10,000 monthly SIP for 20 years at ~12% can grow to about ₹1 crore. However, inflation (around 6%) reduces purchasing power significantly over time. After 20 years, ₹1 crore may feel like only ~₹31 lakh in today’s value. The issue is that most SIPs remain fixed while income grows. Solution: Increase SIP every year using a Step-Up SIP (e.g., ~15% annually). Result: A step-up SIP can grow the corpus to around ₹2.85 crore instead of ₹1 crore.
